Debt Ceiling Negotiations on Hold Until Biden Returns from G-7 Summit

The ongoing negotiations surrounding the debt ceiling have been put on hold yet again, according to House Speaker Kevin McCarthy. The discussions will not continue until President Joe Biden returns from the G-7 Summit in Japan.

Reasoning

McCarthy has stated that negotiations cannot move forward until the President returns to the country, citing a backward move from the White House in the current deliberations surrounding the debt ceiling. Biden has not shown concern regarding the negotiations and believes that they will be able to avoid a default.

The Latest Hurdle

This latest pause in negotiations is a significant hurdle in the ongoing debate in Congress on what to do with the pending debt limit. Treasury Secretary Janet Yellen has identified June 1 as the earliest possible date on which the United States could run out of money to pay debts incurred by the government.

The Compromise Bill

Any deal to raise or suspend the debt limit will need to pass in both the GOP-led House and the Democratic-controlled Senate. Key lawmakers in both parties have acknowledged that the eventual compromise bill could be unacceptable to hardliners. The high-stakes talks over raising the debt limit resumed in the Capitol on Friday evening, after being paused at midday when Republican negotiators walked out of the room, blaming the White House for holding up discussions.

In summary, negotiations surrounding the debt ceiling have been put on hold until President Joe Biden returns from the G-7 Summit in Japan. This latest pause is a significant hurdle in the ongoing debate in Congress on what to do with the pending debt limit. Any deal will need to pass in both the GOP-led House and the Democratic-controlled Senate, and key lawmakers in both parties have acknowledged that the eventual compromise bill could be unacceptable to hardliners. The high-stakes talks over raising the debt limit resumed on Friday evening after being paused at midday when Republican negotiators walked out of the room, blaming the White House for holding up discussions.